Post-Brexit, the EU’s fifth money laundering directive has brought with it more stringent reporting for Trustees and others to increase transparency. This reporting requirement can also include some investments arranged by Financial Advisers. Our Aniketa, and Zara from Woodfines Solicitors met with Neil at Cambridge 105 Radio to reveal all – listen to their podcast HERE
Previously, we were only required to register Trusts who owed HMRC tax on the Trust Registration Service (TRS). Many more Trust structures and other arrangements will now be required to register on the TRS, including almost all UK Trusts irrespective of their tax position, Loan Trusts, and Discounted Gift Trusts arranged by your Financial Adviser. Some non-UK Trusts will also need to register if UK land or property is acquired by the trustees or if one of the trustees is a non-UK resident and certain conditions are met. The deadline for registration is 1 September so if you need to register, please act now …
The most common examples of UK Trusts which will need to be registered under the TRS are:
- Where the legal owners of an asset are different from those who benefit from it – often known as a bare Trust; not as uncommon as you might think. Is your legal and beneficial ownership of your investment property, for example, different?
- Co-ownership trusts for property (for example, where one spouse legally owns holds 100% of a property but the beneficial ownership and resulting rental income is split between the two spouses)
- Some investments held within Trust structures (such as Discounted Gift Trust arrangements and investment bonds)
- Trust structures are created in Wills to hold, for example, a share in a home or debts and Pension Death Benefits – note, Will Trusts are not required to register until two years after the date of death.
Fortunately, there are some exclusions – these include:
- Bank accounts or JISAs held for children who are under 18 years of age – another example of a bare Trust arrangement
- Trusts created as a result of divorce, bankruptcy, or intestacy
- Charitable Trusts
- Certain life policies and terminal illness Trusts.
If you are a Trustee or are simply named on an arrangement organised by a Financial Adviser and need help with your Trust Registration, please call Charlotte, Angie, or Aniketa on 01223 810100 for friendly help and support.
